Cargill opens Netherlands plant to expand supply of FR3 fluid in Europe
The new facility in Gouda aims to meet rising demand from power grids, data centers, and clean energy projects.
NETHERLANDS – Cargill, a global leader in food and agriculture solutions, has opened a new production plant in Gouda, the Netherlands, increasing its European supply of FR3 natural ester dielectric fluid as demand grows across energy and industrial sectors.
The company said the facility will triple its regional production capacity, helping customers access the fluid more easily as investment in power grids and digital infrastructure rises. The move also supports faster delivery and more stable supply across Europe.
“Establishing a state-of-the-art full-scale production facility for FR3 fluid in Europe allows us to better serve regional customers, reduce complexity in logistics, and respond faster to market needs,” said Colleen May, President of Cargill Bioindustrial. “This new facility reflects Cargill’s long-term confidence in FR3 fluid as a critical solution for the future of global energy systems.”
FR3 fluid has operated in the market for over 30 years and supports more than five million installations worldwide. The product offers a higher fire point than mineral oil and breaks down fully in about 10 days under standard testing conditions. Cargill says these features help improve safety and reduce environmental impact in power systems.
The company links rising demand to the expansion of renewable energy, battery storage, and data centers. These sectors require reliable transformer fluids that can perform under pressure while meeting environmental standards.
Cargill selected Gouda after reviewing several sites. The company pointed to the location’s technical expertise, existing infrastructure, and strong transport links as key factors. The site already hosts an ester production plant, which supports smooth integration of the new facility.
Cargill invested about $30 million in the expansion, reinforcing its presence in the Netherlands and its focus on local manufacturing. The company expects the plant to improve supply reliability across Europe while cutting delivery times.
Wider context on global systems
The announcement comes as new research from Economist Impact highlights gaps in global food systems. The Resilient Food Systems Index (RFSI), supported by Cargill, shows a wide gap between countries, with affordability performing well but access and infrastructure still lagging.
“The data show food systems are deeply interconnected: when countries implement targeted, coordinated action across key resilience levers, the benefits ripple across entire systems,” said Jonathan Birdwell, Global Head of Policy and Insights at Economist Impact. “But if these interventions fall short or happen in isolation, overall system resilience will deteriorate.”
Cargill CEO Brian Sikes added that reliable supply chains remain critical. “Everyone needs dependable access to nutritious, affordable food,” he said. “This research offers valuable insights that can help strengthen the world’s food systems.”
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